Civil Procedure Code, 1908—Order 8 Rule 6A—Counter-claim—The dropping of a winding-up petition pursuant to a Supreme Court order referring to an “amicable resolution” specific to winding-up proceedings does not imply abandonment of related monetary claims or counter-claims in a pending civil suit arising from the same transaction—A counter-claim added by amendment with court permission and unchallenged for a significant time is not barred by limitation, especially if litigation is ongoing (Order 8 Rule 6A CPC)—A party’s prior sworn statement admitting an enhanced interest rate (24% p.a.) constitutes valid evidence under Sections 17 and 58 of the Evidence Act despite subsequent denials—For interest calculation under Section 34 CPC, pre-suit payments established by the Supreme Court redu...

The plaintiff filed a suit seeking recovery of Rs. 1,46,554.90/- from the defendants, claiming that they were entitled to the principal amount with interest at 19.5% per annum, and also sought compensation for dishonored bilty—The defendants admitted to the credit facility but contended that only 75% of the amount was given as cash, with 25% held as margin money—The trial court partially dismissed the suit, awarding the plaintiff Rs. 82,648.80/- with interest at 19.5% per annum, and partially allowed the defendants' counter-claim for Rs. 9,348.30/-—The plaintiff appealed, arguing that the trial court wrongly dismissed the suit and allowed the counter-claim, and failed to apply the quarterly interest rate as agreed—The court upheld the trial court's decision, affirming that the plaintiff was entitled only to...

Code of Civil Procedure, 1908—Section 96—Order XLI Rule 1— Composite appeal to impugn dismissal of plaint and allowing Counter claim—Procedure—The composite appeal was filed well within the period of limitation and, except for the fact that a separate memorandum of appeal was not filed—No other defect, far less serious defect, was shown to exist—If even after being alerted the appellant had failed to file a separate memorandum, the first appellate court would have been perfectly justified in dismissing the appeal—It is not shown that any such endeavour was made—For the ends of justice, impugned second appellate judgment and decree of the High Court together with the first appellate judgment and decree are quashed—This would result in revival of the first appeal on the file of the...

Civil Procedure Code, 1908 (CPC)—Order 8 Rule 6A—Counter Claim—Counter-claim in question could not have been removed out of consideration merely because it was presented after a long time since after filing of the written statement. ...

(A) Civil Procedure Code, 1908—Section 100—Punjab Courts Act, 1918—Section 41—Second Appeal in Title Declaratory Suits—Scope and Limits—Under Section 100 of the CPC, a second appeal lies before the High Court only on a substantial question of law—However, in State of Haryana, Section 41 of the Punjab Courts Act, 1918 governs second appeals, where formulation of a substantial question of law is not mandatory—The appeal is permissible only if decisions are contrary to law, custom, or fail to address material legal issues—A second appeal is not a forum for re-examining facts settled by lower courts—The plaintiffs failed to prove ownership of agricultural land, and mere absence of a counter-claim does not warrant granting the decree—The Second Appellate Court’s reasoning ...

Arbitration and Conciliation Act, 1996—Section 23(2A)—Counter-claim—before initiating arbitration does not warrant the dismissal of a party's counter-claim—Clauses 26.1 and 26.2 must be construed in a practical and pragmatic manner—These clauses necessitate that parties initially make sincere efforts to settle and resolve their disputes, including attempting conciliation. However, if the prescribed procedure in Clauses 26.1 and 26.2 fails to produce the desired outcome, namely a settlement within the timeframe specified in Clause 26.2, then the dispute can be referred to arbitration as outlined in Clause 26.3—Importantly, once a dispute, difference, or controversy is formally notified under Clause 26.1, the entirety of the subject matter, including any counter-claim or set-off, becomes subject to ar...

Negotiable Instruments Act, 1881—Section 138—Dishonour of cheque—Notice—Claim and counter-claim—No clarity in plaint—On the basis of material brought to Court and principal documents of the parties, it could not be said that an unimpeachable claim had been made out by plaintiff—Which required the defendant to furnish security—In view defendant's clear admission in defendant's letter effect that plaintiff was in possession of fitness centres at Vepery and Kilpank—Defendant will remain restrained from interfering with plaintiff's possession of two fitness centre till disposal of suit, without previous leave of trial Court—O.S.A. Nos. 213 and 182 of 2021 disposed of without interfering with judgment and order under appeal—C.M.P. No. 8145 of 2021 in closed. (Paras 9...

Civil Procedure Code, 1908 (CPC)—Order 8, Rules 6A—Limitation Act, 1963—Article 68, Article 69, - Continuing wrongs—limitation period for raising a counterclaim concerning the wrongful detention of goods—The dispute involved the appellant, his brother, and sister, with the latter filing a suit for declaration of title to a residential house—The appellant allegedly locked a room, leading to a counterclaim for damages filed by the sister, asserting losses from a National Savings Certificate and damages for wrongful detention—The High Court, relying on Section 22 of the Limitation Act, held the counterclaim not barred by limitation—The Supreme Court disagreed, emphasizing that a suit for damages differs from a continuous wrong concerning property enjoyment—It clarified that unless a ...

(A) Rajasthan Court Fees and Suits Valuation Act, 1961 - Section 21, Section 47—In a civil appeal challenging a trial court's judgment, where defendants filed a counterclaim for a specific amount, the plaintiffs appealed without paying court fees on the counter claim—The defendants subsequently filed an application under Order 7, Rule 11 of the CPC, arguing that court fees should have been paid on the counterclaim amount—The court held that under Section 21 of the Rajasthan Court Fees and Suits Valuation Act, court fees must be paid on the subject matter of the appeal, which includes the counterclaim amount. (B) Rajasthan Court Fees and Suits Valuation Act, 1961 - Section 21, Section 47—The court referred to Order 8, Rule 6A of the CPC, which treats a counterclaim as a separate suit for the purpose of c...

Civil Procedure Code, 1908 (CPC) - Order 8 Rule 6A, Order 8 Rule 6A(4), Section 115—Court Fees Act, 1870 - Section 35—This revision under Section 115 of CPC challenges an order dated 15-9-95 by the 7th ADJ, Bhopal in C.S.No.61-B/89—Union Bank of India filed the suit for recovery of debt, and the defendant counterclaimed Rs.63,55,834/-, seeking exemption from court fees under a State Government Notification dated 1-4-83—The court found that the defendant's annual income exceeded Rs.6,000/-, thus denying the exemption—The court cited precedents stating that the exemption from court fees under the notification applies only to plaints and not to counterclaims or appeals—Emphasizing Order 8 Rule 6-A (4) of the CPC, which treats a counterclaim as a plaint, it held that the defendant must pay court fees on...

Civil Procedure Code, 1908 (CPC) — Section 11 — Contractor K.V. George's appeals challenge Kerala High Court's reversal of a Sub-Court judgment and arbitration award — The dispute arose from a construction contract, with the contractor failing to meet deadlines — The High Court directed reconsideration of arbitration in light of counterclaims — The contractor filed multiple claims, leading to conflicting decisions — George argued against the High Court's ruling, citing procedural errors and contractual terms — However, the Court upheld the High Court's decision, emphasizing the applicability of res judicata and constructive res judicata in arbitration — Additionally, the contractor's failure to raise all disputes initially was deemed fatal to subsequent claims &mdash...